Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
SPI futures are pointing to a circa 20-point retreat on the open, after US markets pulled back sharply overnight.
The Dow Jones fell more than 400 points at one point, while yields on benchmark government bonds are near April 2014 highs as caution creeps into markets after one of the best starts to a year in recent history.
The Dow ended about 363 points lower as the US 10-year yield edged higher, to 2.72%.
Commodities also took a hit, with oil down 1.7% and iron ore down almost 2%.
What’s on today:
Local data: Fourth quarter CPI, Private sector credit December
Overseas data: Japan industrial production December; Euro zone unemployment December, CPI January; UK GfK consumer confidence January; US FOMC decision, ADP employment data January, Chicago PMI January, Pending home sales December
SPI futures down 20 points (-0.3%) to 5940
AUD -0.2% to 80.76 US cents
On Wall St: Dow -1.4%, S&P 500 -0.9%, Nasdaq -0.9%
In New York, BHP -1% Rio -0.6%
In Europe: Stoxx 50 -1%, FTSE -1.1%, CAC -0.9%, DAX -1%
Spot gold -0.1% to $US1339.09 an ounce
Brent crude -0.9% to $US68.82 a barrel
US oil -1.7% to $US64.42 a barrel
Iron ore -1.8% to $US72.97 a tonne
Dalian iron ore +0.2% to 518 yuan
LME aluminium -0.8% to $US2207 a tonne
LME copper -0.5% to $US7050 a tonne
10-year bond yield: US 2.72%, Germany 0.68%, Australia 2.86%
What happened overnight: